Levitee Labs Inc., a private British Columbia company in the alternative medicine and integrative wellness space, said Wednesday that it has close a heavily oversubscribed non-brokered private placement with the issue of a total of 21,140,000 subscription receipts of the company at a price of $0.50 each, for aggregate gross proceeds of $10,570,000.
The company said it intends to use the proceeds from the private placement to fund acquisitions, as working capital and for fees associated with the listing of its shares. With the private placement closed, Levitee Labs said it now intends to pursue the listing as expediently as possible.
In a statement, Pouya Farmand, chief executive officer of Levitee labs commented: "We are pleased to have completed our oversubscribed go-public financing. This serves as a cornerstone to achieving our mission of transforming the integrative wellness industry through the inclusion of psychedelic medicine. We aim to be the first publicly listed company within the psychedelic space to achieve significant revenue and cashflow. We would like to thank our shareholders, advisors, and agents for their support."
Each subscription receipt issued under the placement will be convertible, without additional payment, into one unit of the company following Levitee obtaining a final receipt on behalf of each of the securities regulatory authorities in the Provinces of Canada in which the subscription receipts have been sold for a final prospectus qualifying the issuance of the shares and the warrants and the company receiving conditional approval for the listing of the shares on the Canadian Securities Exchange (CSE).
Each unit will consist of one common share of the company and one-half of one common share purchase warrant (each whole warrant. Each warrant will be exercisable into one share at a price of $0.75 per share for a period of three years following the issuance date. Cash finder's fees and finder's warrants will be issued on release of the funds from the private placement to the company. Each finder's warrant will be exercisable for two years into one share at a price of $0.75 per share.
Levitee Labs is establishing itself as a leader in the integrative wellness space. Through leveraging an M&A regimen that focuses on the centralization of complementary integrative wellness assets, it aims to transform mental health and addiction treatments through the integration of psychedelic medicines and therapies.
The company's current portfolio of assets includes Sporeo and MONKE Nutraceuticals. Sporeo manufacturers the first commercial-grade offering of spawn and substrate and has mass distribution agreements in place with leading global distributors. Sporeo is currently developing an ecommerce platform that will be a centralized portal for all mushroom cultivation needs.
MONKE specializes in the development and distribution of premium functional mushroom supplements. This adaptogenic product line was formulated to enhance consumers' wellbeing. Levitee Labs aims to catalyze access to compounds and alternative medicines that enhances the wellbeing of society.
Contact the author at jon.hopkins@proactiveinvestors.com